Selling Your Home Without a Realtor
With the fluctuations in today’s real estate market everyone is wondering how they can retain the most profit from the sale of their home. Unfortunately, with all the homes available on the market today simply raising the price of your home is not an option.
The most common reason for a homeowner to sell without a real estate broker is to avoid the costly commission fees. A real estate broker’s commission fee hovers around 6% of the total price of the home. For a home that sells for $300,000, the broker’s commission fee would be around $18,000.
For Sale By Owner
On the other hand, selling a home on your own is no easy task. Your house is likely your biggest asset and selling it will require daily engagement. If you are thinking about selling your home yourself you’ll need to break down the process into steps.
Several months before you list you will need to evaluate your budget and finances. Can you afford the transaction costs? You need to have enough money saved up in order to collect and pay for key documents. These documents range from the title and mortgage to insurance paperwork. If you need to sell your home quickly, doing it by yourself may not be the best idea.
Review House’s Condition:
Next up comes the repairs. If the home is in disrepair this step can be expensive. Cosmetic problems with the property can be fixed relatively cheaply, but functional repairs and home upgrades can get costly. Before you can put your house on the market you need to evaluate pipes, appliances, heating, a/c, roof, and other structural elements.
If market conditions are rising, pricing your home can be as easy as adding your improvement costs to the most recent purchase price. But in a fluctuating market (foreclosures, short sales in the neighborhood) your home’s value may be dragged down. Establishing a fair market price for your home requires discipline. Check recent sales of local properties through public records. Investigate multiple pricing tools and think about hiring a local appraisal expert.